Ningquan Yang Dong warns of the AI bubble.

Multiple private placement monthly reports and investor letters have sparked discussions in the market. In particular, Yang Dong, the founder of Ningquan Asset Management, expressed strong concerns about the valuation and crowded trading of popular AI stocks. Those who share this concern include value-oriented managers such as Ren Wenqi, the controlling shareholder of Zeyuan Investment. Meanwhile, institutions such as Fusheng Asset Management, Yuanlesheng, and Dongfang Port still believe that the trend of the AI industry is not over, but that there is a need for re-evaluation and dynamic tracking within the market. In this round of disagreements, Yang Dong's open letter has become the focus of recent market attention. In the letter, he openly admitted that the company's performance this year has not been good, apologized to the shareholders, and bluntly stated that the team "seriously underestimated the potential for a bubble to form in the AI infrastructure theme." However, he also mentioned, "We dare not participate anymore. Because we do not have the ability to pull the chestnuts out of the fire, and to safely come out unscathed. Taking such risks would be irresponsible to our shareholders."